The Senate will attempt to counteract the hike in student loan rates that went into effect on July 1st, after the two parties were unable to reach a compromise to stop the rates from doubling from 3.4 percent to 6.8 percent.
One reason why Congress was able to leave the issue of skyrocketing rates for July is that it affects only new loans in the subsidized program, which make up about a quarter of the federal student loan program according to the Congressional Budget Office. Most students won’t sign off on those new loans for a few weeks, when the fall semester starts in colleges, which gives lawmakers some breathing room.
For now, a vote on extending the lower rate for one-year is scheduled for Wednesday.
Jillian Rayfield is an Assistant News Editor for Salon, focusing on politics. Follow her on Twitter at @jillrayfield or email her at email@example.com.